Vietnam–India Economic Ties

Abstract

Vietnam and India have had good political relations since the two countries gained independence in the 1940s. Despite the good political ties, however, economic collaboration was not a priority in bilateral relations until the 1990s. After 1990, the situation started to change as Vietnam began implementing its opening up policy and India saw Vietnam as an important partner in the deployment of its Look East Policy. Thus, both Vietnam and India have made great efforts to promote trade and investment cooperation between the two countries. Certain difficulties, nevertheless, continue to hinder bilateral economic relations. This paper is an attempt to analyse Vietnam–India economic relations since the two countries established a strategic partnership in 2007, with a focus on the economic advantages and needs of Vietnam and India, the current situation of Vietnam–India economic relations, and prospects for the further development of these relations.